Thanks for standing by. Welcome to the StealthGas First Quarter 2011 Financial Results Conference. At this time, all participants are in a listen-only mode. There will be a presentation followed by question-and-answer session. (Operator Instructions) I must advise you this conference is being recorded today, Monday, the 16th of May, 2011. I would now like to hand the conference over to your first speaker for today, Harry Vafias. Please go ahead, sir.

Thank you, and good morning, everyone. Welcome to our conference call and webcast to discuss the results for the first quarter ended March 31, 2011. I'm Harry Vafias, CEO of StealthGas and I would like to remind you that we'll be discussing forward-looking statements in this conference call presentation. Regarding the Safe Harbor language, I would like to refer you to slide number one of this presentation as well as to our press release and our first quarter results. With me today is Konstantinos Sistovaris, our CFO. If you need any further info on the call or the presentation, please contact myself or Konstantinos. Slide number two, we have added this slide because we get a lot of investor enquiries regarding our business. So while most of you are familiar with our company, let me briefly discuss what we do for those participants that are joining for the first time. We own a large fleet of ocean going vessels transporting a number of different cargos on behalf of our charters. All our vessels are 100% owned and we do not charter any vessels owned by others that we may then relet to third parties. The main focus of our company is in transportation of liquefied petroleum gas. We own 35 vessels between the sizes of 3,000 and 8,000 cubic meters that is a smaller Handy Size segment of the LPG market. In that segment, we are by far the largest owner of such vessels in the world. Our vessels carry liquefied petroleum gas, LPG, which is different from natural gas, LNG. By LPG, I refer to a number of different gasses as you can see on this slide, which are liquefied through pressure or low temperatures in order to be carried safely and in bigger volumes. In addition to the…

Thank you, Harry, and good morning, everybody. Let me continue the presentation with slide number six, the financial highlights for the first quarter 2011. With an average of 38 vessels owned and operated in the first quarter, we realized net income of $1.5 million on voyage revenues of $30.5 million and an EBITDA of $10.5 million. Included in the net income figures is a $2.3 million expense due to the change in the fair value of derivatives. This consists of a non-cash loss of $0.8 million on interest rate swaps and currency hedging arrangements, due to the movement in the fair value of these instruments as well as a cash loss of $1.5 million relating to payments under the interest rate swaps. Also included in the net income figure is a non-cash loss of $0.5 million on the valuation of a foreign currency deposits in yen that we hold mainly for the payment of installments for the new building vessels. Excluding non-cash items I just mentioned, our net income was $2.8 million or $0.13 a share calculated on $21.1 million average sales outstanding. The free cash balance at the end of the quarter was approximately $35 million versus $30 million at the end of last quarter. Our net debt to cap stood at $45.6 at the end of the quarter, similar to last quarter's levels. We continue to believe that maintaining our leverage at moderate levels is important and believe that when all vessels have been delivered we will maintain a debt to capital ratio below 55%. We'll now turn to slide number seven. This slide provide you with an overview of the development of our income statement for the same quarter last year and the previous quarter. In comparing our results from the first quarter of 2010 when we…

Slide 11. This slide illustrates a volatile freight market over the past eight years for the medium size and the larger size gas ships. In comparison, mid-size and smaller semi ref-fully pressurized ships, our core sector have expense much lower of volatility recently. A mild recovery in one-year charter rates in this sector’s evident. The same applies for the larger vessels in the LPG sector. These LPGs, which are – most are not included in the slide, but as for these 80,000 should be investments fluctuation in the last five years from 30,000 a day to 3,000 a day. It's also clear from this data that all types of ships, which form the core of our business have over the past couple of years not experienced a significant fluctuation in rates that our average shipping sectors have and we hope that this will be elected a non-volatility trading pattern will continue. It's also visible in this slide that the rates for the smaller size ships have steadily increased during 2010. Of course there are seasonal patterns in this freight that's the winter must have – they are most active, that we hope that this pattern will continue. During the first quarter of '11 rates for Handy Size LPG ships continue to improve, as we showed during the winter months of 2010 and we're able to renew some charters at high levels. We do expect the summer months not to be as strong, but still better than what we experienced last summer. Turning over to slide 12. I'd like once again to compare volatilities for our niche sector of the first 1,000 CBM fully pressurized ships, which are typical of the majority of our fleet to the Drybulk and Crude Oil Tanker segments, as you can see based on the main…

(Operator Instructions) Your first question comes from David Cohen. Please ask your question.

Yes. Could you talk a little about whether your strategy with regard to the mix between long-term charters and spot – and running under spot agreements has changed given either the market – overall market changes driven by demand or specifically the Japanese nuclear situation? Thanks.

Since – I found the company in 2004 our strategy has been the same i.e. approximately 75% of the fleet are better than 25% of fleet’s spot, and this has not changed till today.

Do you see – do you think that the Japanese situation is likely to affect the markets in which you trade?

We expect a small positive effect, but this doesn’t mean that we will change our strategy because of that.

Thank you.

Thank you.

Your next question comes from Bruce Berger. Please ask your question.

Yes. Hello. I was a bit surprised the TCE is up $1,000, utilization is increased and yet we really didn’t see any of the operating leverage come through to the earnings. So I was wondering if you were a bit disappointed with the quarter and that earnings weren’t a little bit higher. And then second question is, your recent press release indicated close to a $10,000 TCE with your recent charters. When do you expect that to flow to the rest of the fleet?

Thank you for the double question. Number one, we have the majority of the ships on period. Therefore, even if there was a significant increase, we can only fill it in the free vessels and the spot vessels. Number two, we had some extraordinary expenses during the first quarter plus we had more expenses because we had less ships on bare-boat. Otherwise we are very pleased with the quarter because it showed a significant improvement of the market for this small gas ships, and if we didn’t fill it a lot in the first quarter we hope to fill it more in the remainder of the year end 2012. So, generally we are very happy. Obviously if we had more free ships we could renew them at higher numbers, but as you’ve seen from our – from the longevity of our charters, a lot of them are not very long. So hopefully, we are going to renew them; we’re going to renew them at better numbers. The $10,000 that we hedged for the – as others for the free vessels is actually very, very good. This is close to the peak for these small vessels. Now when are we going to see benefits for the remainder of the fleets, I’ve answered already the question. Ships come open every quarter and we always try to find the best rate and the best name to take the ships. We’ll continue to do the same, and hopefully continue to renew at high levels than previously done.

Could I ask one additional question?

Yeah.

What is your thought on buying back shares versus dividends as the company’s profitability continues to improve?

At the moment, we’re not going a neither of the two, but if we had to choose, we would go for buying back stock because obviously the stock at the moment is very, very cheap, and therefore it’s better for the company’s money to be used that way than dividends.

Okay. Your next question comes from Anna Pan [ph]. Please ask your question.

Okay. This is Tom McKay. Good afternoon. With your current debt level at about seven times EBITDA, I was wondering why it makes sense to have so much of a fleet on bare-boat charters as opposed to time charters where you’d be operating the ships? It doesn’t seem to make sense to use up debt capacity for bare-boat charters, but maybe I am missing something?

Sorry. I didn’t understand the question. What has the debt to do with – if I charter my ship out on TC or bare-boat?

Well, why would you use debt capacity to cement a ship that you put out on bare-boat charter and don’t operate yourselves?

Because it’s cheaper for the company and less risk.

But it increases your total debt?

Right. It increases my total debt.

Well at seven times EBITDA, and they’re essentially financing transactions?

No. You have probably misunderstood. We are buying ships. We always take an amount of the purchase price in debt. So, let’s say 60% or 70% depending on the age of the ship, and then we choose if we’re going to fix it out on bare-boat or time charter. In the majority of cases, not always, we prefer bare-boat, as I told you before, because it’s cheaper. It uses less of the company’s resources. It’s safer, because if an accident happens or pollution or whatever, then the charter must pay not the owner, i.e., us. And thirdly, you have less of hire and less technical costs because all these costs are covered again by the charters. So I have to disagree with you on that.

Okay. Well then we disagree.

Thank you.

Thank you.

Your next question comes from Natasha Boyden. Please ask your question. Natasha Boyden – Cantor Fitzgerald: Thank you. Good morning, gentlemen.

Hi, Natasha.

Hi, Natasha. Natasha Boyden – Cantor Fitzgerald: You’ve been obviously very busy selling some of your smaller, older vessels and when you look at your fleet now, are there more ships that you would consider selling or have you pretty much sold everything that you’d like to sell for the time being?

When you are trading at 55% discount, anything is up for sale. Natasha Boyden – Cantor Fitzgerald: Okay. Again, would we expect you to look for the sort of more older vessels or it just depends on what offer you might get for any vessel you have in the fleet?

We are open for all ideas but obviously we want to get rid of the early-mid, and early and mid ‘90 ships. Natasha Boyden – Cantor Fitzgerald: Okay. And what is the liquidity like in the S&P market right now? What are you seeing in these?

We always get accused that there's no liquidity, but as I proved for one more time, there's ample liquidity because there were eight ships sold during the first quarter, smaller ships, four from us and four from different sellers. And you will see, as time passes by there will be more and more demand for these vessels, not only because supply of product is going up, but because the yards are not building those ships. And, therefore, somebody wants to get his hands on a readymade ship, ready for sailing, there are not too many options out there. Natasha Boyden – Cantor Fitzgerald: Okay. Great. And in terms of asset values right now, do you find them attractive and intend to continue expanding the fleet? Or do you focus primarily on cash flow generation and de-leveraging?

As we've discussed many, many times, the prices for LPG ships have not dropped, only for the over 15 years old maybe there's been a small drop. On the modern vessels, less than 10 years, there's actually been a strengthening. Thus, no, at the moment we are not looking to buy. We will deliver, keep the cash and then we decide what we're going to do. Natasha Boyden – Cantor Fitzgerald: Sure. That makes sense, but you've obviously got other sectors apart from just LPG, you've got the product tankers and the Aframax out there. And with asset values kind of coming down in those sectors, would you tend to look at those particular assets in those sectors? Or again, as you just pointed out, would you just focus on cash flow generation right now?

The tankers start becomes interesting. I think if it continues like that and nothing changes, there's going to be attractive assets in the summer and the autumn, but we are not actively looking to buy at the moment. We are just watching what happens and we are continuing to generate cash. Natasha Boyden – Cantor Fitzgerald: Okay. Great. And just lastly, I just want to touch on a question I think the first caller asked about. Just with the situation in Japan, I know you said you expect there to be a small positive impact, but would you not expect that to, especially with the fears of nuclear power right now, to really – for people to turn to LNG and LPG, as an alternative source of fuel? Or wouldn't that be helpful to the industry?

Yes. But don't forget Japan is the biggest importer of LPG anyway, so any way they're importing huge quantities of LPGs, that's why I'm saying it's going to be a small positive impact, because they're already huge users of LPG. If they were not big users of LPG, we would expect them to increase far more, but because already they import so much, I don't think there's going to be such a huge difference. Natasha Boyden – Cantor Fitzgerald: Okay. Great. Thank you very much.

Thank you.

Your next question comes from George Berman. Please ask your question.

Good morning, gentlemen. Kalimera, as they say in Greece.

Kalimera.

Nice quarter for now, trading at a very low valuation, I just recently gotten into building some positions in the company. Could you tell me the vessels that you just sold, compare their day rates to the one you just put up at $10,000 per day? What kind of advantage do we have in selling the older vessels and then taking delivery off the newer ones?

I didn't understand your question. Your question is about size or what?

No. You just sold some older ships. What kind of day rates would they receive versus the newer ones?

The difference in day rates?

Yeah.

Depends not only on the age, but depends also on the size and it also depends on the approvals, but if you are talking about the 3,500 cbm vessels, without approval, so I would say minimum 25% discount.

So, it makes sense for you to delete the older ships bring on new ones and over time your entire fleet will roll over to hopefully higher day rates?

Depends on many things, but we are looking to, as discussed, to slowly, slowly sell the slightly older vessels and slowly renew the fleet through acquisitions and through new buildings and have the biggest fleet in the industry and also have the youngest fleet in the industry. That will make them very flexible and hopefully command the premium and comparison with the older vessels.

Yeah. Excellent. Explain to me real quick then and the hedging losses that you are taking, actual cash losses? How does that compute?

I suppose you refer to the interest rate swaps we have?

Yeah.

I mean this is due to the fact that rates have come down so fast after the financial crisis and they have been very low. So, we had hedged a very large part of our debt at around 3%. And now that rates are low, I mean we have to pay for this, but if interest rate rises which will give us protection on the other hand.

And you would have that then conversely either non-cash gains or your interest rates costs are basically stable.

Yes. There will be many things. I mean, if interest rates rise, the first thing that will happen is, the liability that is shown for these derivatives will decrease.

Right.

So, we're going to write profit from that. Secondly, that we're going to pay less cash because of this interest rate swaps. And the third thing is that we will be protected from further increases in the rates.

Great. Great. Are you considering using the currently ridiculously low rates to hedge further?

We are thinking about it. At the moment, our policy remains to have about half our debt hedged. And we are covered. But we are looking at it, in case, we see interest rates rising. We will proceed and increase our interest rates hedging as well.

Great. And then you had mentioned that all additional, new, free cash flow generated into the future you would rather deploy in buying back shares in the market based or you had half of its value than in entertaining a cash dividend. Is that correct?

We would look at buying back shares or buy ships. We would not be giving dividends for the short, for the medium term.

Great. I think that's a good move here. Thanks very much for your time.

Thank you.

(Operator Instructions). Your next question comes from Jeff Geygan. Please ask your question. Jeff Geygan – Milwaukee Wealth Management: Good morning, gentlemen.

Hi, Jeff. Jeff Geygan – Milwaukee Wealth Management: Hi. I have to beg a little bit further on Natasha and David's comments related to the situation in Japan, as there was somewhat of a knee-jerk reaction around the world, particularly in Germany where nuclear is being questioned, which I would think bodes positively for demand and consumption of LPG, which may have an unexpected consequence on pricing for your services.

Yes. What is the question? Jeff Geygan – Milwaukee Wealth Management: You've publicly stated that you think the situation in Japan will only have a modest impact. Is it possible that there could be more than a modest impact?

Jeff, if I knew that, I would be not be speaking now on the phone with you, I would be probably somewhere else. Jeff Geygan – Milwaukee Wealth Management: Very good.

But, we all want to be very conservative in our predictions, especially on things that we do not control and we cannot forecast accurately. So, we prefer to say modest increase and if it's a super increase and extraordinary increase, then obviously would be very positively impacted directly to the bottom line. Jeff Geygan – Milwaukee Wealth Management: And, Harry, during your prepared comments, you did conclude by saying that you felt your shares were inappropriately valued in the marketplace. Can you add some color in terms of what you feel an appropriate valuation would be?

You cannot have a company, which is a leader in its field. Number one, it has very relatively low debt in comparison to other shipping companies and has never had an operational loss. The order book of each segment is actually negative and it's trading at half of its NAV. This is never heard of. We've never heard of something similar, so, I don't know what is the valuation but I think it should definitely at NAV. Jeff Geygan – Milwaukee Wealth Management: Okay. Thank you.

Thank you.

(Operator Instructions). You have no further questions at this time. Please continue.

We would like to thank everyone for joining us at our conference call today and for your interest and trust in our company. We like for – we look forward to having you with us again at our next conference call for our second quarter results in August of this summer. Thank you very much.

That does conclude the conference for today. Thank you for participating. You may all disconnect.